Govt lauded for reducing trade deficit

KARACHI: Pakistan Japan Business Forum’s (PJBF) has appreciated government efforts for reducing the trade deficit and encouraging “make in Pakistan” by imposing regulatory duty on finished products.
The PJBF in its meeting, however, noted that perhaps the measures had been overzealous in some areas and, as a result raw material, not locally produced, has also been extravagantly taxed. “These measures will become a deterrent to the government’s own make in Pakistan plan,” the PJBF statement said.
Cost of local product should not exceed the buying ability of people as otherwise demand would fall drastically, expected advantage would not accrue, and stagflation would ensue.
The board observed that the government was evaluating the consequences of its decisions and would undoubtedly make due corrections.
The board emphasised that, while protection to local producers of raw materials was justified, levies of regulatory duty on imported raw materials for the industrial sector, which were not manufactured locally, needed to be withdrawn.